FNSSMS601
Provide advice in self-managed superannuation funds


Application

This unit describes the skills and knowledge required to establish relationships with trustees of self-managed superannuation funds including identifying and analysing their objectives, needs, financial situation and risk profile; developing and presenting appropriate strategies and solutions; negotiating a financial plan and coordinating its implementation while maintaining necessary documentation and providing ongoing service where requested by the trustee.

It applies to individuals who use effective communication skills to build relationships and use specialised industry knowledge to respond to enquiries and assist clients with complex needs and requirements.

Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.


Elements and Performance Criteria

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Establish relationship with client

1.1 Establish knowledge level of client using range of communication and interpersonal skills

1.2 Respond to enquiries in relation to products and services by explaining range of products and services available and their relevant fee and charging methodology

1.3 Inform client of role of adviser and licensee or principal responsible for adviser’s conduct

1.4 Comply with procedures for complaints handling and circumstances in which they should be engaged

2. Identify client’s objectives, needs and financial situation

2.1 Use range of communication and interpersonal skills to gather client’s personal, financial and business details

2.2 Identify client needs by encouraging expression of their objectives and short-term, medium-term and long-term goals as relevant to product

2.3 Identify product risk profile of client

2.4 Obtain client expectations of cash flow and relevant taxation obligations

3. Analyse client’s objective, needs, financial situation and risk profile

3.1 Undertake assessment of client needs using all information gathered and taking into account client’s product expectations and specific needs

3.2 Consult client throughout analysis for further clarification where necessary

3.3 Analyse need for specialist advice and/or refer client to appropriate adviser for higher level or specialist advice if required

3.4 Assess product risk profile of client and reach agreement

3.5 Apply knowledge of the Australian Securities and Investment Commission (ASIC) identified generic and specialist knowledge relevant to the products being offered

4. Develop appropriate strategies and solutions

4.1 Determine appropriate strategy to provide for identified needs and outcomes from analysis of products, client risk profile and assessment of client’s needs

4.2 Conduct relevant research, analysis and product modelling

4.3 Draft appropriate solution (plan, policy or transaction) for presentation to client

5. Present appropriate strategies and solutions to client

5.1 Demonstrate product knowledge appropriate for service or product offered when presenting product

5.2 Explain and discuss proposed transaction with client in clear and unambiguous way

5.3 Reinforce relevant details, terms and conditions of product and service to client

5.4 Disclose impacts and possible risks of solution in clear and concise manner to client

5.5 Provide client with written supporting documentation and guidance through key aspects of documentation

6. Negotiate financial plan, policy or transaction with client

6.1 Discuss and clarify concerns and/or issues client has regarding proposed plan, policy or transaction

6.2 Seek confirmation from client that client understands the proposed plan, policy or transaction

7. Coordinate implementation of agreed plan, policy or transaction

7.1 Gain client’s formal agreement to proposed plan, policy or transaction

7.2 Clearly explain associated fee and cost structures and gain confirmation of understanding from client

7.3 Clearly explain timeframes for execution and processing, and gain confirmation of understanding from client

8. Complete and maintain necessary documentation

8.1 Complete proposal and all other statutory and transactional documents and obtain sign off by client

8.2 Exchange copies of appropriate documentation and signed agreement

9. Provide ongoing service where requested by client

9.1 Agree on type and form of ongoing service, including reporting on performance and review of plan, policy or transaction with client

9.2 Clearly explain fees and costs for ongoing and specifically defined service, and confirm understanding gained from client

9.3 Provide ongoing service as required

Evidence of Performance

Evidence of the ability to:

use a range of communication and interpersonal skills to gather financial details to identify the self-managed superannuation fund's objectives, needs, financial situation and risk profile

analyse the self-managed superannuation fund's objectives, needs, financial situation and risk profile and identify relevant strategies

present appropriate strategies and solutions and negotiate with trustee until confirmation to proceed is obtained

prepare documentation that meets legislative requirements

negotiate and agree to ongoing service to be provided to the trustee.

Note: For insurance products, competence in this unit is subject to the staff members’ approval or authority to accept the transfer of risk.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.


Evidence of Knowledge

To complete the unit requirements safely and effectively, the individual must:

Generic knowledge requirements

analyse the economic environment, the characteristics and impact of economic and business cycles, including interest rates, exchange rates, inflation, and government monetary and fiscal policy

discuss the operation of financial markets, the roles played by intermediaries and issuers, structure and interrelationships within the financial markets, and interrelationship between industry sectors

compare and contrast financial products, including the concept of a financial product, general definition, specific inclusions and exclusions, types of financial investment products and types of financial risk products

appraise taxation issues in relation to the products and markets in which they operate

discuss advisory functions, the role of the representative or adviser, participants in the advisory services market and range of services provided

explain the profile and financial information of the client and appropriateness of a risk assessment

discuss the legal environment and disclosure and compliance, the role of the representative or adviser, relevant legal principles (e.g. Corporations Act, Financial Services Reform Act, the relationship between ethics and regulatory requirements (e.g. good faith, utmost good faith, full disclosure of remuneration or fees and any other conflicts of interest which may influence the adviser’s recommendation)

interpret relevant industry codes of practice and conduct

describe complaints resolution procedures (internal and external)

describe regulators’ guidelines including the requirements of ASIC policy relevant product areas.

Specialist knowledge requirements

describe the operation and management of self-managed superannuation funds

describe the characteristics and structure of a superannuation product

distinguish between the roles played by intermediaries and issuers

describe different types of superannuation products

outline fee structure, administration and management costs

describe types of contributions

describe annuities or pensions, allocated pensions and income stream products and analyse associated risks with these

describe the structure of superannuation plans management and administration of superannuation products

define preservation rules

evaluate investment strategies within superannuation funds

identify restrictions on investment strategies.

Taxation

analyse the impact of taxation on investment earnings

define and explain a range of terms including:

employer and employee contributions

benefit payments and expenses

tax deductions

capital gains tax treatment

rollovers

death benefits

franking credits

explain taxation issues related to retirement planning.

Legal environment - disclosure and compliance

describe the role of the representative or adviser

discuss the application of relevant legal principles contained in:

Corporations Act

ASIC Act

Privacy Act

discuss the relationship between ethics and regulatory requirements (e.g. good faith, utmost good faith, full disclosure of remuneration and fees and any other conflicts of interest which may influence the adviser)

explain the relevance of industry codes of conduct

describe compliant resolution procedures (external and, if relevant, internal).


Assessment Conditions

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the self-managed superannuation field of work and include access to:

organisational financial records

organisational policy and procedures

special purpose tools, equipment, materials and industry software packages.

Assessors must satisfy NVR/AQTF assessor requirements.


Foundation Skills

This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.

Skill

Performance Criteria

Description

Reading

1.2, 1.4, 3.1, 3.2, 3.3, 4.1, 4.2, 8.1, 9.1

Selects, synthesises and critically evaluates complex texts with highly embedded information

Assesses the currency and accuracy of organisational documents

Writing

3.1, 3.3, 3.4, 4.1, 4.2, 4.3, 5.5, 8.1, 9.1

Records and consolidates related information and organises content in a manner that supports the purposes and format of the document

Oral Communication

1.1-1.4, 2.1-2.4, 3.2, 3.4, 5.1-5.5, 6.1, 6.2, 7.1, 7.2, 7.3, 9.1, 9.2

Presents information about products and processes, choosing language and register appropriate to the audience

Asks questions and listens to responses from clients using appropriate register, vocabulary and paralinguistic features

Numeracy

1.2, 2.1-2.4, 3.1, 3.3, 4.1, 4.2, 4.3, 5.1, 5.2, 5.4, 5.5, 6.1, 7.1, 7.3, 8.1, 9.2

Identifies and uses statistical models and extracts, comprehends and analyses mathematical information embedded in a range of complex documents

Navigate the world of work

1.4, 3.5

Takes responsibility for ensuring that own knowledge of procedures and legislative requirements is accurate

Ensures that all compliance and organisational obligations are fulfilled

Interact with others

1.1-1.4, 2.1-2.2, 3.2, 3.4, 5.1-5.5, 6.1, 6.2, 7.1-7.3, 9.1-9.3

Selects and uses appropriate conventions and protocols when liaising or sharing information with clients or colleagues

Uses a range of strategies, including reading of verbal and non-verbal signals, to establish connection and build rapport with clients

Negotiates with others to obtain agreement on proposed solutions

Recognises the importance of joint ownership of process and outcomes, and seeks to identify common understanding and agreement

Get the work done

1.1, 1.3, 1.4, 2.1-2.4, 3.1-3.4, 4.1, 4.2, 5.5, 6.1, 8.1

Plans, organises, and implements complex tasks, aiming to complete them to client satisfaction

Applies systematic and analytical processes to decide on most appropriate products for clients in complex and non-routine situations

Uses the main features and functions of digital tools to complete work tasks and to access information


Sectors

Self-managed superannuation